Actually UCGal, you’re close. If he hasn’t, he needs to spend the $700 to incorporate out of state. Contract through the corporation and pay himself and meager but reasonable salary and have the corporation distribute the bulk of his earnings as dividends for the stock he holds in the corporation.
(Note, I’m not a tax attorney so you need to verify)
And I would suggest getting much more serious but deducting your business expenses and identiying them as such.
